Kalypso

The current turmoil in the automotive industry is unprecedented. Production and sales have plunged, consumer buying mentality has shifted, raw materials and energy prices have escalated, and credit markets have frozen. These challenges demand a major transformation within the automotive industry in order to become profitable in the future.

With highly unprofitable businesses in the hands of its leaders, the challenge for automakers - strapped for cash and innovation - is how to increase profit margins and reduce capital costs. They need to drive cost out of products wherever they can to stay focused on hard cash.

To make improvements, auto organizations must take stock of their businesses with brutal honesty. That requires studying their current portfolio mix to slash unprofitable areas and determine where they can design cost out in order to increase top line profitability. Best practices in new product innovation and collaborative innovation will drive costs out to help them become more profitable and thus, more attractive to Wall Street investors.

Additionally, auto organizations can no longer be completely dependent on the supply chain. They must leverage their existing Intellectual Property (IP) and technology assets across different industries and markets that are more profitable and that have a more strategic path for the future. While they have valuable IP abound, auto organizations need to determine how to go to market and execute outside of their comfort zone.

Transforming the legacy auto industry environment is no easy task. Kalypso helps organizations rethink their strategies and shift the focus away from the product to the process itself. Our team of experts is here to guide automotive organizations through the transformation and execute strategies that will help them become profitable once again.

Kalypso's automotive industry practice provides services to the following industry sectors:

• Tier 1 &2 Suppliers
• OEMs